ISLAMABAD: The Asian Development Bank (ADB)'s Trade and Supply Chain Finance Programme (TSCFP) has signed an agreement with Dubai Islamic Bank Pakistan Limited (DIBPL) to support trade in Pakistan.
The ADB issued an official statement, saying it will provide guarantees to help the DIBPL expand its trade finance business in Pakistan.
The TSCFP has been operating in the country since 2008. The addition of DIBPL increases TSCFP's Pakistan partner banks to 13 and makes Pakistan one of the programme's most promising markets. To date, the programme has supported more than $17.3 billion in trade in Pakistan through 5,891 transactions.
This support has predominantly been provided for steel, polypropylene, fertilisers, and machinery for garments and weaving.
In 2020, the TSCFP supported 650 transactions in Pakistan valued at $1.2 billion, with 51 percent co-financed with commercial banks, it added.
"This further demonstrates our commitment to supporting trade in Pakistan," said TSCFP Relationship Manager for Pakistan Nana Khurodze. "We are delighted to work with DIBPL to support its initiatives with trading companies, including providing small and medium-sized enterprises with access to global trade." "This agreement will further streamline and ease the process for trade finance giving a boost to business activities in Pakistan. Our partnership with ADB shows trust in Dubai Islamic Bank Pakistan as an entity. We aim to work towards increasing trade flows to the country," Dubai Islamic Bank Pakistan CEO Junaid Ahmed said.
Backed by the ADB's AAA credit rating, the TSCFP provides loans and guarantees to more than 200 partner banks to support trade, creating import and export opportunities for enterprises across Asia and the Pacific.
The DIBPL is the wholly-owned subsidiary of Dubai Islamic Bank UAE.
The DIBPL has operated in Pakistan since 2006 with a network of 235 branches located in around 70 cities.
Copyright Business Recorder, 2021
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